Challenger Energy eyes value inflexion point after “transformational” year
Published: 03:19 13 Jun 2025 EDT
Challenger Energy Group PLC (AIM:CEG, OTCQB:BSHPF) has now filed results for what it described as “a transformational year”, and a period in which it recentred its business to focus on offshore Uruguay.
Moreover, it secured a farm-out transaction with tier 1 operator, Chevron, and significantly advanced its prospects.
Soon, it expects to complete the divestment of assets in Trinidad, and in the coming six months a new Uruguay farm-out process is planned.
It spells positivity and optimism at Challenger.
“As we look to the second half of 2025 and beyond, I am more convinced than ever that we are at an inflection point,” chief executive Eytan Uliel said in the statement.
“Financially and operationally, we are in the best position we have been in for many years. The hard work of the last few years means that over the coming 12-24 months, a significant value-creation opportunity lies ahead of us.”
In terms of financials, in the twelve months ended 31 December, Challenger reported a narrower loss of $1.1 million, versus $13.42 million in the preceding year.
Importantly, the firm completed the farm-out of its AREA OFF-1 exploration asset offshore Uruguay, bringing in Chevron and banking $12.50 million in cash.
Chevron acquired operatorship and a 60% stake in the block. And, the American group will now fund 3D seismic work and a share of potential drilling costs.
Meanwhile, and separately, the AREA OFF-3 asset saw technical work progress, with 3D seismic reprocessing and geotechnical studies, to bring forward a new farm-out process for this asset.
The OFF-3 farm-out process is expected in the second half of 2025.
Since the end of the financial year, Challenger Energy announced it is exiting its business in Trinidad and Tobago - a sale agreement was signed in February, and completion is expected by the end of June.
Challenger noted that, at the end of 2024, it held $8.4 million in unrestricted cash and it had no debt.
